Global commercial real estate market trends

The global commercial real estate market is undergoing structural shifts driven by technological expansion and changing work patterns. Forecasts indicate the market could grow from approximately $447 billion in 2025 to roughly $703 billion by 2035, with data centers and hospitality identified as primary growth drivers.

While rising interest rates and the shift toward hybrid work have pressured lower-quality office and high-street retail assets, there is increasing demand for high-grade, energy-efficient office spaces and logistics facilities. In the United Kingdom, this has led landlords to consider repurposing older secondary-office and retail premises.

By the second quarter of 2026, earnings reports from major firms such as JLL, Cushman & Wakefield, and CBRE confirm this trend. Office leasing activity has reached post-pandemic highs for prime assets, even as older spaces face higher vacancy rates. Data centers have emerged as a significant revenue engine, with firms reporting substantial growth in integrated facilities management, project work, and downstream services related to data center infrastructure.

New data from the first half of 2026 indicates a significant surge in transaction activity. According to Green Street, sales of properties valued at $25 million or more reached $164 billion, representing a nearly 30% increase from the $126 billion recorded during the same period in 2025. Transactions for smaller properties, valued between $5 million and $25 million, also rose by 9.3% to $57.1 billion.

This recovery is attributed to increased financing availability and the construction of AI data centers, which have become a major investment source. Additionally, sales volume is being bolstered by distressed properties, including office buildings facing reduced demand and those with upcoming loan maturities. In Los Angeles County, investment sales rose 28.5% in July compared to the previous year, driven largely by the multifamily sector, which accounted for 58% of regional investment during that month.